Environmental and industrial measurement company Vaisala is providing insurance and reinsurance company Endurance Specialty Holdings with data for a multi-year wind hedging transaction with Meridian Energy Australia.
The deal provides financial protection against the risk of low annual earnings from price and volume variability at Meridian’s Mount Millar wind farm in South Australia.
Endurance Global Weather’s WindLock helps companies manage the wind variability of operating assets as well as assets in development. However, it requires access to reliable long-term climate analysis, which Vaisala will provide.
Endurance Global Weather president Martin Malinow said: ‘This transaction is noteworthy given the site-specific settlement data provided by Vaisala and the relatively long contract duration.”
Meridian Energy Australia general manager, energy trading James Waldren said: “As a merchant renewable energy company, we see this transaction as an innovative way of complementing our existing portfolio of risk management solutions to provide greater earnings certainty for Meridian.”
Vaisala global manager of energy services Pascal Storck said: “By providing accurate wind measurements at Mount Millar, where there is no public weather station at the relevant hub height, we are able to reduce potential basis risk for Meridian.”
Image: Morgue File
Vaisala measures up in Australia
Data to be provided for Endurance Specialty Holdings's wind hedge deal
By EBS